A round-up of the recent news stories about Loan Companies paying out Loan Claims after they have been found to be “irresponsibly lending“.
Amigo Loans was in the spotlight during June 2020, with the Financial Conduct Authority launching an investigation into the “creditworthiness assessment process of subprime lender Amigo Holdings“. This news means that if you have had a loan with Amigo in the past, and could not pay it, you may be eligible for a claim and potentially a refund for all the interest paid plus 8%.
90% of affordability complaints are being upheld against Amigo Loans, with more and more people claiming against the company for mis-sold credit. Amigo has even been referred to as a “legal loan shark” by members of Parliament. Reports also confirm that Amigo initially set aside £26.6 million to deal with affordability complaints.
Further reports have recently been published concerning Amigo Loans, with the firm “facing a £35 million back of complaints” and the Financial Conduct Authority (FCA) launching an investigation into Amigo’s “assessment process for customers creditworthiness‘.
The Amigo Loans company was due to be sold to an unnamed buyer earlier this year, but this deal fell through after the increase of valid customer complaints and the amount needed to settle these claims was disclosed.
Most recently, the shareholders of Amigo Holdings voted against “proposals to remove its board” after the Amigo Founder, James Benamor, called for a shareholder meeting to remove the entire board.
If you have borrowed a loan from Amigo and found that you were unable to pay the loan you could be eligible to claim compensation. Start your claim or get in touch with the experienced Reclaim Experts team who will guide you through the process.
Like Guarantor loans, doorstep loans have come into the spotlight recently, with the Financial Conduct Authority instructing Provident, also a doorstep loan provider, to pay “almost 169m in compensation to customers’ after mis-selling a particular loan product to customers.
Doorstep Loans, also known as home credit loans, are used by 1.3 million people in Britain and it’s the practice where a collector comes to your house to collect the repayments, rather than paying them through a bank or standard repayment scheme.
Other complaints about doorstep loans include people being sold a home credit loan by an agent, when they could not afford it. In 2019, there was also controversial report of Provident offering “lending bonuses” to it’s doorstep lending staff, with concerns of having “bonus payments linked to loans issued to subprime borrowers”.
QuickQuid was part of the same group of lenders, Wonga and Money Shop Group, who started in 2007 and have all since stopped lending. When QuickQuid went into administration, it was estimated that there was
around 500,000 customers with outstanding loans. Many of these customers had filed affordability claims against QuickQuid, with it becoming one of the most complained about firm to the Financial Ombudsman (FOS).
MYJAR’s website offers an interest insight into it’s complaints report, with 57 credit related complaints per 1,000 accounts.
In 2019, there were 6825 complaints opened, with 19% of these complaints being upheld, meaning that there was validity in those complaints. Have you been in the same position, in you took out a loan with MYJAR but then this put you into more financial difficulties?
In 2018, Lending Stream received criticism that their TV advert did not clearly state their APR rate, with the ASA upholding a breach of ad rules and misleading advertising.
They have also been critised for not making their complaints procedure easy, removing the ability for customers to submit a complaint via email. On the flipside, Lending Stream has set aside £5.9 million to meet customers’ complaints against unaffordable lending- and you could be entitled to some of that money.
In 2014, Sunny put in place a number of changes to address problems with their approach to clients, following involvement by the Financial Conduct Authority. There have also been several rulings of criticism against Sunny, by the Advertising Standards Authority’ for misleading wording, in relation to giving customers the ability to “repay early without penalties” and also for not clearing displaying the “APR prominently” in their TV advert, again misleading consumers.
If you took out a loan and found that it was unaffordable, you could be eligible to claim against your lender. We are here to help and as a Claims Management Company specialising in reclaiming refunds on loans, we would like to assist you in receiving the compensation you deserve. Please get in touch to start your claim, or simply click on the “Claim Now” button above.